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Kimberly is examining her company's three key processes, where important conversion work takes place. Most, but not all, units require Operation 1 (machining). All units require Operations 2 (assembly) and 3 (quality control). Since not every unit requires all three processes, the company utilizes an operation costing approach. The following budgeted costs and production volumes reflect beginning-of-the-year estimates. Machining, Operation 1 Assembly, Operation 2 Quality control, Operation 3 (a) ✓ Your answer is correct. Budgeted Cost $189,800 81,200 45,675 Conversion cost rate per unit Budgeted Volume in Units 73,000 Calculate a budgeted conversion cost rate per unit for each of the three operations. (Round answers to 2 decimal places, e.g. 15.25.) Machining, operation 1 101,500 101,500 2.60 $ Assembly, operation 2 0.80 Quality control, operation 3 $ 0.45

Kimberly is examining her company's three key processes, where important conversion work takes place. Most, but not all, units require Operation 1 (machining). All units require Operations 2 (assembly) and 3 (quality control). Since not every unit requires all three processes, the company utilizes an operation costing approach. The following budgeted costs and production volumes reflect beginning-of-the-year estimates. Machining, Operation 1 Assembly, Operation 2 Quality control, Operation 3 (a) ✓ Your answer is correct. Budgeted Cost $189,800 81,200 45,675 Conversion cost rate per unit Budgeted Volume in Units 73,000 Calculate a budgeted conversion cost rate per unit for each of the three operations. (Round answers to 2 decimal places, e.g. 15.25.) Machining, operation 1 101,500 101,500 2.60 $ Assembly, operation 2 0.80 Quality control, operation 3 $ 0.45

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the following two jobs, where the use of the three operations varied. Total units Total DM cost Operations used (X): Machining Assembly Quality control Total job cost $ LA Job 1 Cost per unit $ 4,000 $19,600 X X X Job 2 Determine the total cost and the per-unit cost of each job using operation costing. (Round cost per unit answers to 2 decimal places, e.g. 15.25.) 5,000 $17,750 X X Machining, operation 1 35,000 8.75 LA $ tA $ Assembly, operation 2 37000 7.40
Transcribed Image Text:Consider the following two jobs, where the use of the three operations varied. Total units Total DM cost Operations used (X): Machining Assembly Quality control Total job cost $ LA Job 1 Cost per unit $ 4,000 $19,600 X X X Job 2 Determine the total cost and the per-unit cost of each job using operation costing. (Round cost per unit answers to 2 decimal places, e.g. 15.25.) 5,000 $17,750 X X Machining, operation 1 35,000 8.75 LA $ tA $ Assembly, operation 2 37000 7.40
Kimberly is examining her company's three key processes, where important conversion work takes place. Most, but not all, units require Operation 1 (machining). All units require Operations 2 (assembly) and 3 (quality control). Since not every unit requires all three processes, the company utilizes an operation costing approach. The following budgeted costs and production volumes reflect beginning-of-the-year estimates. Machining, Operation 1 Assembly, Operation 2 Quality control, Operation 3 (a) Your answer is correct. Budgeted Cost Conversion cost rate per unit $189,800 $ 81,200 45,675 Budgeted Volume in Units Calculate a budgeted conversion cost rate per unit for each of the three operations. (Round answers to 2 decimal places, e.g. 15.25.) Machining, operation 1 73,000 2.60 101,500 101,500 $ Assembly, operation 2 0.80 Quality control, operation 3 $ 0.45
Transcribed Image Text:Kimberly is examining her company's three key processes, where important conversion work takes place. Most, but not all, units require Operation 1 (machining). All units require Operations 2 (assembly) and 3 (quality control). Since not every unit requires all three processes, the company utilizes an operation costing approach. The following budgeted costs and production volumes reflect beginning-of-the-year estimates. Machining, Operation 1 Assembly, Operation 2 Quality control, Operation 3 (a) Your answer is correct. Budgeted Cost Conversion cost rate per unit $189,800 $ 81,200 45,675 Budgeted Volume in Units Calculate a budgeted conversion cost rate per unit for each of the three operations. (Round answers to 2 decimal places, e.g. 15.25.) Machining, operation 1 73,000 2.60 101,500 101,500 $ Assembly, operation 2 0.80 Quality control, operation 3 $ 0.45
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